Common Investment Pitfalls and Traps
Investing your money can be a daunting task. The road to finding the right investment for you can be littered with confusion that can translate into high costs and worst yet—significant financial loss and fraud.
Be a victor and not a victim! A few simple actions can potentially help investors sidestep the financial devastation promoted by a con artist or unscrupulous investment professional. Here are some common pitfalls to avoid:
►Commissioned salespeople posing as impartial advisers with “credentials.”
►Lack of disclosure regarding uninsured products sold at banks.
► Poor quality of oral and printed disclosure about investment products.
► Hidden derivatives in funds touted as “safe.”
► Account statements that do not clearly indicate performance, fees, and commissions.
► Unauthorized investment products sold by a registered securities salesperson.
► Sales pitches with exaggerated claims about guaranteed profitability within a short time period.
Common Investment Pitfalls to Avoid
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